Ground Lease

Lease that rents the land only. One who plans to develop a structure on land that is ground leased will usually insist on a long-term-lease, such as for 30 or more years.

One that rents the land only.
Example: The landowner, Abel, gives a 50-year ground lease to Baker. Baker must pay $5,000 per year rent. At the end of the 50-year period, Abel owns the land Free and Clear and whatever Improvements that Baker left on the property.

A legal contract for the lease of land; contains an agreement that the lessee is obligated to pay rent each year for the use of the land for the duration of the contract; the lessee usually builds on the land but the buildings so constructed must be turned over to the land’s owner at the termination of the contract.